Some further information has come my way, courtesy of a letter in the "Dronfield Eye" magazine, sent to me by my Sister who still lives in Dronfield.
Rather than press speculation, it appears the story originates from a recent meeting between Network rail and interested parties, ie "Friends of Dronfield Station", and local and County councils.
If the listed structure Lea Road Bridge, immediately north of the station has a clearance issue, and given its massive stone construction I would think it would be difficult to alter, and very expensive to rebuild, so lowering the track bed
might be an option.
However Network Rail say detailed survey work for electrification is not due to start on this stretch of line until next year, so I suspect they are not yet able to start looking at detailed engineering solutions in the Dronfield area.
It remains to be seen if the River Drone culverts under the station are an issue. Certainly from my recollection the culvert is well below track level as it stands at present, and diverting it away from the station is likely to be a non-starter because after the river's "first pass" under the station there is a dyke arrangement where the Lea Brook joins the Drone.
However this " river under the railway" issue starts south of the Wreakes Lane bridge, past what was the Lucas shovel works site, (now inevitably a supermarket) then crosses to the West of the line, before returning to the Eastern side of the track still underground, past the site of an iron foundry, (now a garden/open space) before emerging under the side of the aforementioned Lea Road bridge.
This bridge is a complicated structure. Immediately it has crossed the railway to the east it turns through 90 degrees onto a substantial arched ramp, of around 150 metres, with the river below, to take the road down to join the main road through the valley.
I suspect NR will want to look at the whole stretch of railway/river before coming up with a solution.
In response to the previous poster, the water level in the Drone is more managed now, after the building of a holding reservoir at Bowshaw, to manage the rainfall run-off from a housing estate at Lowedges. The last serious flooding of Dronfield town centre and the railway trackbed by the Drone was in 1957.